Ø CGST
Delhi South Commissionerate busts firm for fraudulent availment
of ITC of over Rs. 15.78 crore; arrests partner of firm
·
CGST
Delhi South Commissionerate
arrested a partner of an iron and steel trading firm for allegedly availing,
utilising and passing on inadmissible
Input Tax Credit (ITC) exceeding ₹15.78 crore.
·
The
alleged fraud involved bogus
invoices worth approximately ₹87.67 crore.
·
Investigation
found that
ITC was claimed on invoices issued by multiple suppliers, several of which were
found to be non-existent,
non-functional, suspended or cancelled.
·
Field
verification showed that some suppliers had no genuine business activity at their
declared business premises.
·
The
investigation established that ITC was allegedly availed without actual receipt of goods
and subsequently passed on to other recipients through invoices without corresponding supply of goods.
·
Based
on evidence and statements recorded under Section 70 of the CGST Act, 2017, the
accused was arrested on 14
September 2026 under Section 69.
·
The
accused was produced before the Patiala
House Court, which remanded him to 14 days’ judicial custody.
·
Further
investigation is underway.
As
part of its ongoing enforcement drive against fraudulent Input Tax Credit (ITC)
claims, the officers of Anti-Evasion Branch of the Central Goods & Services
Tax (CGST), Delhi South Commissionerate, have arrested a partner of the firm engaged
in trading of iron and steel goods in a case involving fraudulent availment, utilisation and passing on of inadmissible ITC aggregating
to over Rs. 15.78 crore through bogus invoices of approximately Rs. 87.67 crore.
Investigation
revealed that the firm had availed inadmissible ITC on the basis of invoices issued
by multiple firms, several of which were found to be non-existent, non-functional,
suspended or cancelled. Field verification also established that certain suppliers
had no genuine business activity at their declared places of business.
Further
inquiry established that ITC was availed without actual receipt of goods and was
also passed on to various recipients through invoices issued without corresponding
supply of goods.
Based
on the evidence gathered during investigation and statements recorded under Section
70 of the CGST Act, 2017, the accused was arrested on 14.09.2026 under Section 69
of the CGST Act, 2017 and produced before the Patiala House Court, which remanded
him to judicial custody for 14 days.
Further
investigation in the case is under progress.